Pioneer Natural Res (PXD) Updated - Mar 14

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dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Pioneer Natural Res (PXD) Updated - Mar 14

Post by dan_s »

PXD is in our High Yield Income Portfolio. Based on my forecast, 2023 variable dividends should add up to something in the $19 to $21 range.
PXD's 2022 dividends totaled $25.44

PXD was trading at $195.75 when I posted this.

3-7-2023: Piper Sandler analyst Mark Lear lowered the firm’s price target on Pioneer Natural to $322 from $340 and keeps an Overweight rating on the shares after updating the firm’s E&P estimates post-Q4 results and FY23 outlooks as well as revisiting the firm’s commodity price forecasts. Generally, sentiment for the group has "taken a turn for the better," with broadly less capital efficient guidance out of the way, the analyst tells investors.

3-10-2023: Mizuho analyst Nitin Kumar (highly respected 5-Star energy sector analyst) lowered the firm’s price target on Pioneer Natural to $265 from $293 and keeps a Buy rating on the shares. The analyst reduced net asset values by 5% for the firm’s U.S. oil and gas coverage. This largely reflects lower capital efficiencies for 2023 that are then carried forward over the longer term, the analyst tells investors in a research note. The firm’s top picks in the sector remain Diamondback Energy (FANG), Exxon Mobil (XOM) and Coterra Energy (CTRA). It also removed Pioneer Natural Resources (PXD) from "strong buy" and added PDC Energy (PDCE) to the list, alongside ConocoPhillips (COP), Valero Energy (VLO), Devon Energy (DVN) and Chesapeake Energy (CHK).

PXD is a large-cap upstream company. A pure play on the Permian Basin that generates a ton of free cash flow. It also has a ton of "running room".

Commodity price risk is HIGH because PXD does not hedge except for some regional basis swaps. Which means if you think WTI will go over $100/bbl PXD should be at the top of your BUY List.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34463
Joined: Fri Apr 23, 2010 8:22 am

Re: Pioneer Natural Res (PXD) Updated - Mar 14

Post by dan_s »

Pioneer CEO: The Shale Boom Is Over
Read this: https://finance.yahoo.com/news/pioneer-ceo-shale-boom-over-230000065.html

Pioneer Natural Resources Company (NYSE: PXD) is one of the rock solid “Growth + Income” large-cap upstream companies in our High Yield Income Portfolio. Pioneer is now focused on free cash flow generation with ~5% annual production growth from their drilling programs.

PXD’s 2023 dividend yield should be over 11% based on my forecast and the share price as of the date of this report.
Dan Steffens
Energy Prospectus Group
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